Two partners in a firm of solicitors that has been closed down have been fined £15,000 each for allegedly operating stamp duty land tax avoidance schemes for house buyers.
Richard Chan and Rajob Ali were fined after a prosecution brought by the Solicitors Regulation Authority.
The Solicitors' Disciplinary Tribunal, a legal industry supervisory body, found they had not acted in the best interests of their clients, not provided a proper standard of service, failed to act in a way that would maintain public trust in solicitors, failed to run their business effectively and failed to protect client money and assets.
The SDT heard that Chan and Ali advised clients on the avoidance scheme through their own separate Seychelles-based business, which took a commission.
The tribunal found the pair liable for 20 offences although it also decided the SRA did not prove Chan and Ali acted without integrity, nor that they allowed their independence to be compromised, nor that they acted in transactions which were dubious.
As well as fining the pair £15,000 each, the tribunal ordered them to be jointly liable for costs, which have yet to be agreed.
The SRA closed down the firm in which they were partners - Abode Solicitors in Harrogate - back in October 2013. Chan and Ali now have up to 21 days to appeal.
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Comments
That's it A fine of just 15,000 each OK the SRA closed down their business but these two do appear to have got off too lightly. The Michael Alexander of Alexander's Lawyers Chelmsford SDLT avoidance case is due to be heard at the SDT next month so maybe this time they will impose a sanction more befitting the seriousness of the offence. The problems these dodgy conveyancing lawyers cause us are immense. HMRC can and probably will come back to the client and take the SDLT, interest and a substantial fine. And if the EA unwittingly introduced the iffy conveyancer then the EA is also sucked into the mess.